Israel and Hamas have agreed to a ceasefire, due to take effect from 7pm GMT,
on the eighth day of intensive Israeli fire on the Gaza Strip and militant
rocket attacks out of the enclave.

Egypt has been leading international efforts to end more than a week of violence in and around Gaza, with Mohammed Kamel Amr, the foreign minister, announcing that "these efforts have reached an agreement for a ceasefire."

First word of the truce came from a Palestinian official who has knowledge of the negotiations in Cairo, where Hillary Clinton, the US secretary of state, was also pursuing peace efforts.

Barack Obama, the US president, was quick to praise Benjamin Netanyahu, the Israeli prime minister, for agreeing to support the ceasefire.

"The president commended the prime minister for agreeing to the Egyptian ceasefire proposal, which the president recommended the prime minster do, while reiterating that Israel maintains the right to defend itself," the White House said.

Mr Netanyahu had told Mr Obama he was ready to give a ceasefire a chance, but warned more forceful action might bee needed if it fails.

"(Netanyahu) spoke a short while ago with President Barack Obama and agreed to his recommendation to give the Egyptian ceasefire proposal a chance, and in this way provide an opportunity to stabilise the situation and calm it before any more forceful action would be necessary," an Israeli statement said.

Mrs Clinton said the ceasefire had come at a crucial time for countries of the Middle East.

"This is a critical moment for the region. Egypt's new government is assuming the responsibility and leadership that has long made this country a cornerstone for regional stability and peace," she said at a joint news conference with her Egyptian counterpart, Mr Amr.

She also thanked Egypt's Islamist President Mohammed Morsi for his mediation efforts and pledged to work with partners in the region "to consolidate this progress, improve conditions for the people of Gaza, provide security for the people of Israel".

In Cairo, Hamas chief Khaled Meshaal was due to give a press conference following the announcement, according to Hamas sources.